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Global cyberattack could cause $53 billion losses

Tuesday, 18 July 2017 18:56

(Ecofin Agency) - In its latest report, British insurer Lloyd’s said a global cyberattack could cause losses of about $53 billion to the world’s economy.

Released yesterday, the study which was co-written by risk-modeling firm Cyence, suggests that in the event operating systems used by businesses were to be hacked, losses could range between $9.7 billion and $28.7 billion average. However, the document adds that if this attack spreads to cloud services providers, the losses could double, soaring to as much as $53 billion average.

Lloyd’s also highlighted that the losses, which include business interruptions and repairs, could go as high as $121 billion. Out of these, $45 billion might be lost because of companies around the world are underinsured.

In the various scenarios of Lloyd’s and Cyence, hackers have inserted a malware designed to harm systems with a year delay into a cloud provider’s software. The hypothetical losses resulting from the attack are huge compared to $8 billion cost estimated for the “WannaCry” ransomware attack in May, which affected more than 100 countries, Reuters reports.

The Lloyd’s-Cyence report was released in a context where insurance firms are struggling to estimate global exposure to cyber risks, and potential of cyber insurance. A struggle mainly due to the lack of historical data that insurers can use to develop their assumptions.

Aaron Akinocho

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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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